Stocks slumped, after fluctuating much of the morning, as financials fell and the dollar added to gains.
The Dow Jones Industrial Average fell more than 60 points following an upbeat session on Thursdaydriven by stabilizing prices for oil and other commodities, and a modest drop in the dollar.
JPMorgan led the blue-chip index lower, while Kraft gained.
TheS&P 500 and the Nasdaq also fell. The CBOE Volatility Index, widely considered the best gauge of fear in the market, rose above 16.
Among key S&P 500 sectors, financials fell, while healthcare rose.
The dollar rose slightly against a basket of currenciesafter the inflation report, which put pressure on stocks of companies that benefit from a weaker dollar for overseas sales.
"Today’s action is starting to feel like a Friday in the summer, where people who are active in the morning are selling and shorting," said Rick Fier, vice president at Conifer Securities.
Fier said the pattern usually reverses in the afternoon, as the market rallies into the close.
Overall, Fier said he expects to continue to see the commodities trade (meaning skyrocketing commodities prices) unwind, as investors move money from commodities and commodity-related energy and materials stocks into other sectors, like technology.
"We feel better about the market now than we did when the (commodities) market was parabolic," Fier said.
One stock he has his eye on is Apple , which has steadily traded in the range of about $343 a share for about four months. According to Fier, the "consolidation" in Apple shares is a good sign. When the stock moves higher, to a new high of $363 a share, "that would be a real bullish sign."
Contributing to the negative sentiment has been mixed earnings guidance from companies delivering earnings results this week, said Doreen Mogavero of Mogavero Lee, a brokerage.
"I think a lot of people are paying attention to guidance this week," Mogavero said. "There seems to be some concern about the future," she added. "More and more people are talking about the fact the economy is recovering slower than we thought it would."